JPMorgan Chase extends trading loss estimate

Published:  16 Jul at 2 PM

JPMorgan Chase has extended its estimated recent trading losses to $5.8 billion. However, the company’s shares rose on news that last quarter profits hit a better than expected $4.96 billion. Friday’s trading in New York saw the firm’s share price rise by 5.8 per cent.

Originally JPMorgan said that its losses were estimated to be $2 billion. The loss was made at the firm’s main investment office earlier in the year. The bank has since dismissed the individuals responsible and said that it was trying to get some of the money lost back from the traders.

The division which made the losses has now been closed and trading positions have been moved to the investment banking arm. When the losses were first announced, the Wall Street firm lost around 15 per cent of its value.

Jamie Dimon, the company’s chief executive told analysts that it was silly to think that mistakes would never be made adding that it was important to make sure that such mistakes were not made often.

Wells Fargo has also reported second quarter profits of $4.6 billion. The figure is 17 per cent higher than for the same period last year. The bank is the biggest mortgage lender in the US and this year the division made $2.9 billion, a significant increase on the $1.6 billion it made last year.